The Liberal Democrats are considering proposing to abolish the ceiling on
national insurance contributions and removing the lower 10% income tax band as
part of a package of new tax policies.
The move would dramatically increase tax bills for those on middle to higher
The idea is among several designed ‘to stimulate debate and discussion’ and
will be presented ahead of next week’s party conference in Blackpool.
The party aims to re-draft its policy in time for the 2006 conference after
concerns that internally popular proposals for local income tax to replace
Council Tax would result in very high marginal rates.
The party also needs to offset its plans for a higher tax rate for incomes
over £100,000, which would result in Britain having a top rate of tax well above
the OECD average.
Some of the ideas bear the hallmark of intervention by party leader Charles
Kennedy, who appeared to get wrong-footed on the interaction of LIT and current
income tax during the general election campaign.
Andrew Tyrie airs views on the Finance Bill, 'Making Tax Policy Better' report, and Brexit
Drastically fewer offices for HMRC in the hope to reduce their running costs
Laurence Field, the head of tax at national audit, tax and advisory firm Crowe Clark Whitehill outlines the 6 'unexpected items' regarding HMRC's Making Tax Digital plans
Many working in professional services have received honours this new year from the Queen